The Cabinet Committee on Economic Affairs (CCEA) has cleared the proposal for 7.64% stake sale in National Fertilisers (NFL). CCEA has approved disinvestment of NFL though offer for sale (OFS) route which would fetch around Rs 125 crore to the exchequer. The government currently holds 97.64% stake in the company and it plans to disinvest 7.64% stake or over 3.74 crore shares of NFL in the domestic market.
The department of disinvestment (DoD) has approached the CCEA for stake sale in the company through four merchant bankers. IDBI Capital Market Services, Avendus Capital, SBI Cap and Kotak Investment Banking - were in fray for managing the stake sale of NFL.
In May this year, an inter-ministerial panel headed by disinvestment secretary, had cleared the NFL stake-sale. The stake-sale in NFL is part of DoD’s effort to meet the minimum 10% public shareholding norm as stipulated by market regulator SEBI for PSUs.